Covid-19 Outbreak Alters Indonesia Economic Outlook

The government is considering revising the country’s economic growth target this year following the Covid-19 epidemic in China. The outbreak significantly affects the global economy, and Indonesia is not an exception. However, the government set the expected growth to 5.3 percent in the 2020 state budget, higher than the target in 2019 at 5.02 percent.

The Finance Minister, Sri Mulyani Indrawati, on Monday (2/17), said that the Covid-19 was only one of countless uncertainties currently affecting the global economy, from trade and geopolitical tensions, presidential election in the United States, and the political situation in the European Union. However, the economic decisions taken by neighboring countries are also important. For example, Singapore recently revised its economic growth target from 0.5 percent-2.5 percent to minus 0.5 percent-1.5 percent. Sri Mulyani suggested that the government must take into account all of those factors to improve economy-related policies.